The Tax Resources Blog

Archive for July, 2010

Estate Tax 2009 Exemption

Question: Mom died in ’09. Her estate was valued at $3.2 mil, including the $1 mil she gifted in ’07. What is Fed tax?

My mother died in July 2009. Her estate was valued at $3,216,000… which includes the $1,000,000 she gifted to me and my brother in 2007. Does her estate owe any Federal Estate Tax? I assume it doesn’t because the federal tax exemption for 2009 was $3,500,000. Any help would be greatly appreciated.

Answer: If the assets on date of death were $2,216,000 and with prior gifts $3,216,000 then no 706 is required. Note, you can still have to file the 706 if she had mortgages that brought the gross estate below $3.5M.

As for federal income tax, the income after she died is reported on a 1041.

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